Chart of Accounts for Victorian
Chart of Accounts for Victorian
Government Schools
Financial Services Division
Version 7.5.5 July 2018
Contents
Glossary
1.Foreword
2.Introduction
3.Chart of Accounts and the Reporting Process
4.Chart of Accounts Structure
5.General Approach to Chart of Accounts Coding
6.Deactivating or Modifying School Defined codes
7.Handy Hints
8.Goods and Services Tax (GST) and the Chart of Accounts
9.General Ledger – Current Assets
10.General Ledger – Non Current Assets
11.General Ledger – Current Liabilities
12.General Ledger – Non Current Liabilities
13.General Ledger – Accumulated Equity
14.General Ledger – Revenue – Government Provided DET Grants
15.General Ledger – Revenue – Commonwealth Government Grants
16.General Ledger – Revenue – STATE Government Grants
17.General Ledger – Revenue – Other
18.General Ledger – Revenue – Locally Raised Funds
19.General Ledger – Expenditure – Salaries and Allowances
20.General Ledger – Expenditure – Bank Charges
21.General Ledger – Expenditure – Consumables
22.General Ledger – Expenditure – Books and Publications
23.General Ledger – Expenditure – Communications Costs
24.General Ledger – Expenditure – Equipment / Maintenance / Hire
25.General Ledger – Expenditure – Utilities
26.General Ledger – Expenditure – Property Services
27.General Ledger – Expenditure – Travel and Subsistence
28.General Ledger – Expenditure – Motor Vehicle Expenses/ Lease
29.General Ledger – Expenditure – Administration
30.General Ledger – Expenditure – Health and Personal Development
31.General Ledger – Expenditure – Professional Development
31. General Ledger – Expenditure – Trading and Fundraising
34. General Ledger – Expenditure – Support/ Service
35. General Ledger – Expenditure – Camps/ Excursions/ Activities
36. General Ledger – Expenditure – Internal Transfers
37. General Ledger – Expenditure - Miscellaneous
38. Programs, Sub Programs & Initiatives
39. Administration Programs
40. Specific Purpose programs
41. General Purpose Programs
42. Commonwealth Programs
43. Student Support Services
44. DET Initiatives (Subject to Change)
Melbourne December 18
©State of Victoria (Department of Education and Training) 2017
The copyright in this document is owned by the State of Victoria (Department of Education and Training), or in the case of some materials, by third parties (third party materials). No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968, the National Education Access Licence for Schools (NEALS) (see below) or with permission.
An educational institution situated in Australia which is not conducted for profit, or a body responsible for administering such an institution may copy and communicate the materials, other than third party materials, for the educational purposes of the institution.
Authorised by the Department of Education and Training,
2 Treasury Place, East Melbourne, Victoria, 3002
glossary
Abbreviation / Description / Abbreviation / DescriptionABN / Australian Business Number / GST / Goods and Services Tax
ABMVSS / Association of Business Managers in Victorian State Schools / HR / Human Resources
ATO / Australian Taxation office / HYIA / High Yield Investment Account
CASES21 / Computerised Administration Systems Environment in Schools 21 century / ICAS / International Competitions and Assessments for Schools
CoA / Chart of Accounts / NPSE / Non Profit Sub Entity
CRC / Criminal Record Check / RCTI / Recipient Created Tax Invoice
CRT / Casual Relief Teacher / SMS / Schools Maintenance System
CSEF / Camps Sport and Excursion Fund / SRP / Student Resource Package
DEEWR / Department of Education, Employment and Workplace Relations / STLR / Short Term Leave Replacement
DET / Department of Education and Training / TAC / Transport Accident Commission
ECD / Early Childhood Development (Kindergartens, Day Care, Maternal Health) / VET / Vocational Education and Training
EFTPOS / Electronic Funds Transfer Point Of Sale / VPSSA / Victoria Primary School Sports Association
ES / Education Support / VYDP / Victorian Youth Development Program
FBT / Fringe Benefit Tax / WWC / Working With Children check
FSD / Financial Services Division
1.Foreword
This publication is designed to assist school principals and administrative staff in reinforcing and understanding the Chart of Accounts which forms the basis for entering financial transactions in CASES21.Effective understanding and application of the Chart of Accounts will ensure accurate and timely data entry resulting in relevant and reliable financial reports. This in turn allows for in depth interpretation and analysis of the reports that is required for effective decision making.
2.Introduction
The importance of correct coding prior to CASES21 data entry is critical to the credibility, reliance and accuracy of information. The accuracy of CASES21 reports for both internal and external users can only be relied upon when data has been correctly entered into the system. It has been found that miscoding errors generally relate to a lack of understanding of the Chart of Account structure and its link to the reporting process. A ‘best practice’ approach to coding transactions is outlined in this booklet for specific and general reference. /3.Chart of Accounts and the Reporting Process
Schools generate reports for a variety of users and reasons. Chart of Accounts codes are the common denominator for all CASES21 reports; a mastery of the CASES21 coding levels as well as understanding the desired outcome in the form of the report, are vital if reports are to be accurate, timely and relevant.Familiarity with CASES21 reports and an awareness of the variety of alternative reports for presenting information will enhance ‘best practice’ coding and provide the best report format for users. The perspective adopted when coding information will have an impact upon the outcomes generated in reports for users.
Understanding user needs, including Department classification requirements, is an important aspect of generating the correct report for the user.
Further information on the school reporting process is provided in the following publications on the Financial Management website:
‘Operating Statement, A practical example and explanation’, The Balance Sheet, A practical example and explanation’ and ‘Financial Reporting for Schools’.
Website: CASES21 System webpage /
4.Chart of Accounts Structure
The CASES21 Chart of Accounts is structured into two sections for the entry and recording of transactions.Colour coding has been used in this document to assist in recognition of each component of the structure.
Section One – General Ledger
• Assets
• Liabilities
• Accumulated Funds
• Revenue
• Expenditure
Section Two – School Level
• Programs
• Sub Programs
• DET Initiatives
Assets
Items of value owned or controlled by the school as current assets (cash, or items that could be converted to cash within 12 months e.g. bank accounts, sundry debtors, accounts receivable), and non-current assets (items such as plant and equipment which are not easily converted to cash).
Liabilities
Amounts owing by the school to external parties classified as current liabilities (amounts owed to creditors and expected to be paid in the current accounting period) and non- currentliabilities (deferred commitments expected to be met in future accounting periods such as co-operative loans).
Accumulated Funds
The net assets of the school which is represented by the equation:
Accumulated Funds = Assets (what is owned) – Liabilities (what is owed)
Revenue
An inflow of resources/funds resulting from the provision of services, trading and investing operations.
Revenues are received by schools via grants, locally raised funds or other funds such as bank interest.
Expenditure
An outflow of resources/funds in exchange for services or products.
Recurrent expenditure produces benefits not extending beyond the accounting period (expenses such as class materials, telephone); capital expenditure provides value extending into future accounting periods (asset purchase such as equipment with a value over $5000).
Programs
All programs are hard coded in the Chart of Accounts and cannot be altered or added to at school level.
Sub Programs
All Sub Programs are linked to Programs in the Chart of Accounts. Included are hard coded Sub Programs along with a provision for schools to generate additional Sub Programs at each Program level.
Initiatives
Initiatives are predetermined by the Department for accountability purposes. They can be selected against one or more Sub Programs for ease of reporting on revenue and expenditure. Reports can be printed which capture transactions entered across one or more Sub Programs. / They provide the ability for multi-campus schools to report on an individual campus basis.
5.General Approach to Chart of Accounts Coding
General Ledger and Program Chartof Account codes have been defined by the Department and therefore cannot be deleted or modified. At Sub Program level there is the provision for schools to add school defined codes if they are required to meet specific reporting requirements.Schools should develop a consistent approach to the use of school defined Sub Programs in line with their specific needs regarding reporting, monitoring and reconciling activities.
School defined Sub Program codesshould not be created prior to a check being done to ascertain whether a predefined code already exists. Schools should ensure that when they are creating a Sub Program it is coded under the correct Program area.
Wherever possible, use of the Department defined codes should be adopted for the identification and recording of transactions. These codes cover the majority of transactions and are necessary for consistency as well as calculating aggregates for ‘whole ofgovernment’ reporting. The schooldefined codes should be usedselectively and only when a Department defined code for the item does not exist.
Schools should not create a SubProgram code where that code exists at General Ledger level. For example, Cash Grant, commission,photocopying, electricity etc.
When coding a transaction, CASES21 operators should consider a number of questions to assist in ensuring coding is correct: /
- Which bank account am I using?
- Which Sub Program is receiving /spending this money?
- What is the source of funds/ payment for?
- What is the GST treatment of the transaction?
6.Deactivating or Modifying School Defined codes
The only areas of the Chart of Accounts that can be modified at the school level are the Sub Programs. It is possible to edit the description of a Sub Program that has activity recorded against it. The consequence of this is that any subsequent reports will refer to the new description of the Sub Program.All historical reports that are reprinted will reflect the new Sub Program description. As a result, it is recommended that descriptions should only be changed after the End of Year procedures have been carried out and prior to any transactions being recorded against them in the New Year.
Sub Programs can also be set to Active or Inactive. Inactive Sub Programs will not appear in drop down lists and cannot be used for data recording. It is possible to set Sub Programs to inactive when there is current data recorded against that Sub Program. If this is done the Sub Program data will still appear on reports but no further data can be added to the Sub Program.
7.Handy Hints
•Keep school defined SubPrograms to a minimum•Never create a school defined Sub Program using a code that exists at General Ledger level e.g. Cash Grant, interest received, photocopying, telephone
•Think carefully before creatingschool defined codes. Non-specific terms like ‘miscellaneous’, are contrary to best practice
•Coding of revenue and expenditure for CASES21 data entry should mirror the school’s budget approved by School Council
•Do not create a school defined Sub Program code prior to checking whether a predefined code already exists
•When creating a Sub Program, ensure that it is coded under the correct Program area.
•When in doubt seek advice from the CASES21 Support staff via the Service Gateway or Service Desk. Access the Gateway at:
Service Gateway
or 1800 641 943 /
8.Goods and Services Tax (GST) and the Chart of Accounts
Schools GST CodesPrimary, Secondary and Special Schools’ have multiple GST tax codes to choose from when receipting revenue or to apply when paying creditor invoices on CASES21.
The GST revenue code to use will be determined by the type or source of revenue being receipted and for invoices, on whether the creditor holds an ABN and/or GST registration.
It should be noted also that Special Schools have the ability to treat certain revenue (donations etc.) as out of scope (i.e. NS6) due to their status as a Deductible Gift Recipient.
Information is available at:
eduGate Tax webpage
The liability of accounting for GST correctly falls on ‘the receiver’ of revenue: therefore, when schools receive revenue, they should be diligent in ensuring that the correct GST treatment is applied. Schools should also ensure that they claim back all GST to which they are entitled when they make purchases.
A detailed explanation of the GST treatment of revenue and expenditure is provided in the GST tax fact sheet link provided beside each revenue & expenditure code / This information can be accessed by clicking on the link in the Business Rules/Further Information column.
The GST codes for revenue andexpenditure that are utilised byschools are listed in the ‘GST codes for schools’ table.
School Canteen
Where a motion has been passed by School Council to nominate that the canteen will be run as Input Taxed (see fundraising wheel at the Department’s Tax website under Tools and Applications), NO GST will need to be remitted on canteen supplies.
The revenue will be recorded usingGST code Input Taxed Sales (G04).(Note a tax invoice is not required).
Any commission received by the school that relates to sales made through the Input Taxed canteen would be recorded using GST code Input Taxed Sales (G04).
All expenses which relate to thecanteen must be coded Input Taxed(G13) and no GST is claimable by the school in relation to those expenses.
These expenses could includetelephone, utilities, furniture andfittings(fridges, stoves etc.), cleaning costs, requisites and any capital expenditure (building works etc.) directly related to canteen operations.
GST codes for schools
Revenue GST Code / Is GST included / ActionG01 Total Sales inc GST / Yes / School to pay GST to the ATO
G03 Other GST Free Sales / No / GST is not paid to the ATO
G04 Input Tax Sales / No / GST is not paid to the ATO
NS6 Out of Scope / No / GST is not paid to the ATO
Expenditure GST Code / Is GST included / Action
G10 Capital Purchases / Yes / GST is claimed from the ATO
G11 Non Capital Purchases / Yes / GST is claimed from the ATO
G13 Input Taxed / No / No GST to be claimed from ATO
G14 No GST in Price / No / No GST to be claimed from ATO
NP6 Out of Scope / No / No GST to be claimed from ATO
Enquiries
For more detailed information schools should refer to the Tax Compliance Unit website at
eduGate Tax webpage
If you have any questions or enquiries concerning GST, please contact the Department’s Tax Unit on
Phone: 9637 3702.
E-mail - Greg Hart at:
9.General Ledger – Current Assets
Acc Code / Account Title / Account Description / GST Code / Business Rules/ Further Information10001 / High Yield Investment Account (HYIA) / At call Investment account. All Department funding paid directly into this account / N/A / Only Department funding and HYIA bank account interest to be receipted directly into the HYIA.
Maintenance of an investment register for the HYIA is not required.
Refer to Finance Manual for Victorian Government Schools located on the School Finance website.
10002 / Official Account / School operating account / N/A / Used for the receipt of money provided from locally raised funds and non-Department government funds.
All payments to be made from this account.
All school bank accounts (except HYIA) must be in the name of School Council.
10003 / Building Fund / Approved by the Australian Taxation Office for holding tax deductible donations / N/A / The ATO specifies that a separate bank account must be established for DGR Funds operated by the school.
For further information refer to School GST Fact Sheet Deductible Gift Recipient Funds at Tax on eduGate.
10004 / Library Fund / Approved by the Australian Taxation Office for holding tax deductible donations / N/A / The ATO specifies that a separate bank account must be established for DGR Funds operated by the school.
For further information refer to School GST Fact Sheet Deductible Gift Recipient Funds at Tax on eduGate.
10005 / Co-operative Account / Account used to administer loans raised through a co-operative society for a school infrastructure project / N/A / Not to be used to record loan liability.
Refer to the Finance Manual for Victorian Government Schools – Co-operative Accounts section located on the School Financewebsite.
10010- 10020 / Term Deposits / Accounts holding surplus funds for the purpose of generating interest revenue for the school / N/A / Medium to long term investments should be subject to periodic review by the School Council for compliance with school goals and policies. Accounts need to be in the name of the School Council. Funds in these accounts are invested for a term of between 3 and 12 months. A motion is required at School Council for all Term Deposits.
All investments and interest income on investments (other than the HYIA) must be recorded in an investment register.
General Ledger – Current Assets cont.
Acc Code / Account Title / Account Description / GST Code / Business Rules/ Further Information10030-10040 / At Call Investments / Accounts holding surplus funds for the purpose of generating interest revenue for the school / N/A / Investments should be subject to periodic review by the School Council for compliance with school goals and policies. Accounts need to be in the name of the School Council. Funds in these accounts are invested for a term of less than 3 months.
All investments and interest income on investments (other than the HYIA) must be recorded in an investment register.
10090-10099 / Beneficiary/ Memorial Account / Special purpose account for funds bequeathed to the school / N/A / Restricted account for recording donations from a member of the school community as a bequest or memorial on behalf of past students, family etc.
Not to be used for any other purpose.
11000 / Accounts Receivable Control / Total of all accounts receivable balances / N/A / System Use Only
Automated calculation of all current Families balances (total invoices, less total receipts, less total credit notes, journal adjustments, discounts).
11002 / Sundry Debtors / Total of all Sundry Debtors balances / N/A / System Use Only
Automated calculation of all current Sundry Debtors balances (total invoices, less total receipts, less total credit notes, journal adjustments, discounts).
12001 / GST Purchases (reclaimable) / Value of total GST
on purchases / N/A / System Use Only
Automated calculation of all GST purchases-related amounts for the current BAS period.
12002 / GST Clearing Account / Suspense account for GST-related transactions / N/A / System Use Only
Automated calculation of all GST-identified amounts and balances for the current BAS prior to lodgement.
12003 / Provision for Doubtful Debts / Estimate of doubtful debts relating to sundry debtors / N/A / Used to amend the value of expected receipts from sundry debtors e.g. hire of facilities, staff.
Refer to Section 2: Sundry Debtors CASES21 Finance Business Process Guide.
Not to be used for family charges/debtors
12004 / Provision for Non Recoverable Family Charges / Estimate of non-recoverable amounts relating to families / N/A / Used to amend the value of expected essential student learning items invoiced to family.
Refer to Section 1: Families CASES21 Finance Business Process Guide.
General Ledger – Current Assets cont.